The following are the Company’s consolidated operational review and financial condition in 2015 compared to 2014:Income Statement

• Consolidated Net SalesCompany’s sales are derived from sales of paper, stationery and packaging. The consolidated net sales of the Company for the year ended December 31, 2015, was US$ 1,062.5 million; a decrease of 11.1 % compared to the consolidated net sales of US$ 1,194.8 million in 2014. The decrease was due to a decrease in volume and selling price of Company’s products. Consolidated net sales per segment consists of paper products amounted to US$ 993.4 million, as well as packaging products and others amounted to US$ 69.1 million in 2015 (respectively amounted to US$ 1,123.8 million and US$ 71.0 million in 2014).

• Cost of Goods SoldCost of goods sold consists of raw material cost, indirect material costs, labor cost and other overhead costs. Raw material costs consist of pulp. Other overhead costs mainly consist of packaging expenses, repairs and maintenance expenses, depreciation of fixed assets, energy expenses, electricity expenses and water expenses. Cost of goods sold in 2015 amounted to US$ 951.9 million, or a decreased of 9.9% compared to 2014 amounted to US$ 1,056.1 million. Consolidated cost of goods sold per segment consists of paper products amounted to US$ 888.6 million and packaging products and others amounted to US$ 63.3 million in 2015 (respectively amounted to US$ 993.0 million and US$ 63.1 million in 2014).

• Consolidated Gross ProfitThe consolidated gross profit of the Company decreased from US$ 138.6 million in 2014 to US$ 110.6 million in 2015 or a decrease of 20,2%. This was in line with the decrease in selling price of the Company’s products. The consolidated gross profit margin also decreased from 11.6% to 10.4% in 2015. Gross profit of paper products amounted to US$ 104.8 million and packaging products and others amounted to US$ 5.8 million in 2015 (respectively amounted to US$ 130.7 million and US$ 6.9 million in 2014).

• Operating ExpensesOperating expenses consist of selling expenses and general and administrative expenses. Selling expenses mainly consist of freight expenses, commission, salaries and wages and bank charges. General and administrative expenses mainly consist of salaries and wages, management and professional fees, insurance expenses, oce expenses and repairs and maintenance expenses. Operating expenses amounted to US$ 97.6 million in 2015, or a decreased of 16.3% compared to 2014 amounted to US$ 116.7 million.

• Consolidated Operating IncomeThe consolidated operating income of the Company decreased from US$ 22.0 million in 2014 to US$ 13.0 million in 2015, or a decrease of 40.9%. This was mainly due to a decrease in gross profit margin of the Company in 2015. Consolidated operating income per segment consists of paper products amounted to US$ 12.7 million and packaging products and others amounted to US$ 0.3 million in 2015 (respectively amounted to US$ 21.0 million and US$ 1.0 million in 2014).

• Other ExpensesOther expenses-net increased by 128.7% from US$ 10.8 million in 2014 to US$24.7 million in 2015. This was mainly due to the increase in share of net loss of associated company from US$ 0.3 million in 2014 to US$ 19.1 million in 2016.

• Other Comprehensive IncomeThe Company’s recorded other comprehensive income of US$ 25.0 million in 2015 compared to 2014 recorded other comprehensive loss of US$ 0.6 million. Other comprehensive income (loss) was mainly coming from translation adjustments on financial statements in foreign currency.

• Consolidated Net IncomeThe consolidated net income of the Company decreased from US$ 20.5 million in 2014 to US$ 1.5 million in 2015, or a decreased of 92.7%. This was in line with a decrease in gross profit and operating income of the Company.

• Comprehensive IncomeThe Company’s comprehensive income increased from US$ 19.9 million in 2014 to US$ 26.5 million in 2015, this was mainly due to the recognition of other comprehensive income amounted US$ 25.0 million in 2015.

Statement of Financial Position

• AssetsAs of December 31, 2015, the consolidated total assets of the Company stood at US$ 2,683.9 million, a decrease of 1.0% compared to previous year amounted to US$ 2,710.9 million. On December 31, 2015, current assets amounted to US$ 829.3 million; a decrease of 22.3% compared to December 31, 2014 amounted to US$ 1,067.6 million, this was mainly due to a decrease of cash and cash equivalent, advances and prepaid expenses and inventory. The company’s non current assets was amounted to US$ 1,854.5 million on December 31, 2015 an increase of 12.9% compared to December 31, 2014 amounted to US$ 1,643.3 million; the increase of non current assets was mainly due to a increase in investment in associated company and fixed assets.

• LiabilitiesAs of December 31, 2015, the Company's consolidated total liabilities stood at US$ 1,727.8 million, a decrease of 2.9% compared to 2014 amounted to US$ 1,779.6 million. On December 31, 2015, short-term liabilities amounted to US$ 579.1 million, an increase of 3.1% compared to December 31, 2014 amounted to US$ 561.8 millio, this was mainly due to the increase in trade receivables. On December 31, 2015, long-term liabilities amounted to US$ 1,148.7 million; a decrease of 5.7% compared to December 31, 2014 amounted to US$ 1,217.8 million, this was mainly due to the decraese in long term liabilities.

• EquityAs of December 31, 2015, total equity amounted to US$ 956.1 million; an increase of 2.6% compared to previous year amounted to US$ 931.6 million. This was mainly due to an increased in translation adjustment on financial statements in foreign currency.

Cash Flow

As of December 31, 2015, the cash and cash equivalents amounted to US$ 50.4 million, a decrease of US$ 92.0 million compared to December 31, 2014 amounted to US$ 142.4 million. Net cash provided by operating activities activities amounted to US$ 353.8 million, respectively. While, the net cash flows used in investing and financing activities amounted to US$ 377.8 million and US$ 74.9 million, respectively.

Rentability

• Return on Investment

Return on Investment is the Company’s ability to produce assets to generate net income, which is measured by dividing the net income to total assets of the company. The Company’s Return on Investment was 0.1% in 2015 and 0.8% in 2014. The decrease in Return on Investment was due to the decrease of net income in 2015 compared to 2014, whereas there was no significant change in total assets.

• Return on EquityReturn on Equity is the Company’s ability to generate a net income, calculated from net income to total equity. The Company’s Return on Equity was 0.2% in 2015 and 2.3% in 2014. The decrease in Return on Equity was comparable to a decrease in net income in 2015 compared to 2014.

Analysis of the Ability to Pay Debt

• LiquidityLiquidity is the Company’s ability to fulfill its short-term liabilities, as reflected in the ratio of current assets to short-term liabilities. The Company’s level of liquidity as of December 31, 2015 and 2014 was 143.2% and 190.0%, respectively. The decrease level of liquidity was mainly due to the decrease of cash and cash equivalents, inventory and advances and prepaid expenses.

• SolvencySolvency is the Company’s ability to accomplish all of its liabilities, which is measure by the debt to assets ratio and debt to equity ratio. The debt to assets ratio of the Company as of December 31, 2015 and 2014 was xx% and 64.4%. The debt to equity ratio in 2015 and 2014 was 180.7% and 191.1%, respectively. The decrease of debt to equity ratio in 2015 was due to the increase in equity in 2015.

Collectibility of Trade Receivables

On December 31, 2015, trade receivables of the Company was amounted to US$ 80.8 million, or a decrease of US$ 49.0 million compared to 2014 amounted to US$ 129.8 million. The average age of receivables was 40 days in 2015 and 40 days in 2014.

Capital ManagementThe main objective of the Company and Subsidiaries' capital management is to ensure that it maintains a healthy capital ratio in order to support their business and maximize shareholder value. The Company and Subsidiaries manage their capital structure and make adjustments with respect to changes in economic conditions and the characteristics of their business risks. No changes have been made in the objectives, policies and processes as they have been applied in previous years.The Company monitors its use of capital structure using a debt-to-equity ratio which is total debt divided by total equity. Total debt represents interest bearing borrowing, while equity represents total equity attributable to owners of the parent and non-controlling interest